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KARACHI: The Pakistan Petroleum Limited (PPL), a public listed oil and gas exploration company, told investors on Wednesday that the company was seeking to enter into joint venture with Iranian companies.
M Mubbasshar Siddiqui, company secretary, stated that the PPL was interested to enter into the Exploration & Production (E&P) business activities in Iran, as a part of its strategy.“PPL has evaluated a number of opportunities for investment in oil and gas sector of Iran and is pursuing for government's assistance in acquiring working interest in proactive blocks of Iran on government to government basis on mutually agreed terms,” he said.
PPL official further stated that the company was “also interested in opportunity of working with any sound Iranian E&P Company as a joint venture partner in PPL's operated blocks in Pakistan.”
Energy experts say that Iran commands the world's third largest oil reserves and second largest gas reserves. The country has 137.6 billion barrels of proven oil reserves, and 29.61 trillion cubic metres of proven gas reserves. In June this year, The National Iranian Oil Company (NIOC) had announced discovery of another large deposit of crude oil and natural gas in the South Pars field in the Persian Gulf. It was estimated that the discovery would increase Iran's crude and gas condensate reserves by one billion barrels.
The South Pars gas field is located in the Persian Gulf, north of Iran's maritime border with Qatar. The field's reserves are estimated at 14 trillion cubic metres of gas and 18 billion barrels of gas condensates.
Oil and gas analysts at stock brokerage houses expressed mixed views on the development. Mohammad Ali, analyst at the BMA Capital, said that he was not exactly thrilled by the news.
“Such intentions have continued to be expressed, but the question is how many of them have truly materialised?” he asked.
But Faisal Shaji, head of research & Online sales at Standard Capital Securities, thought that it was positive for the country's development in the oil and gas sector.
He observed that Iran lacked latest technology, while PPL had a wealth of geological experts.
The combined activity could yield benefits for both countries, he said. Faisal also believed that given the geo-political situation in the Arab world, it should be advantageous for other companies also to venture into new oil and gas fields in countries in the neighbourhood.
